Estimate the employee-side Social Security and Medicare tax on a paycheck.
Social Security: 6.2% (up to the annual wage base limit, not modeled here). Medicare: 1.45% (no cap; an extra 0.9% applies above high income thresholds, not modeled here).
Illustrative estimate only — tax rules change frequently and vary by jurisdiction/circumstance. Verify with an accountant or official source before relying on this.
FICA payroll tax is split into two parts. Social Security tax is 6.2% on wages up to an annual wage base ($184,500 for 2026) — earnings above that threshold are not subject to the Social Security portion at all, which is why very high earners see a smaller effective payroll tax rate on their full income. Medicare tax is 1.45% with no wage cap, plus an additional 0.9% Medicare surtax on wages above $200,000 for single filers ($250,000 married filing jointly), which employers do not match.
Employers pay a matching 6.2% and 1.45% on top of what is withheld from an employee's paycheck, so the true cost of FICA to the economy is double the 7.65% employee-side figure most people see on a pay stub. Self-employed workers pay both halves themselves through self-employment tax, which is why that rate is roughly double the employee rate.
No — they are separate. FICA specifically funds Social Security and Medicare and is a flat percentage (subject to the Social Security wage cap), while federal income tax is progressive and funds general government spending.
The 6.2% Social Security portion stops applying to any further wages that year — only the 1.45% Medicare portion (and the 0.9% surtax above the relevant threshold) continues on income above the cap.
Yes, employers match the employee's 6.2% Social Security and 1.45% Medicare contributions, effectively doubling the total FICA tax paid on each dollar of wages, split between employer and employee on the pay stub.
No. Unlike a 401(k), FICA contributions do not sit in a personal account — they fund current Social Security and Medicare benefits on a pay-as-you-go basis, and your own future benefit is calculated from your earnings record, not a balance you accumulate.